Ferndale Foods Australia is making a significant A$20 million (US$13.1 million) investment in a brand-new manufacturing facility. This strategic move is designed to directly address the escalating consumer demand for healthier snack options, including better-for-you bars.
Ferndale Foods Australia invests in a new FoodLine Australia manufacturing facility in Ballarat, Victoria, to expand production of better-for-you snack bars.
The new facility, named FoodLine Australia, will be located in Ballarat, Victoria. Ferndale Foods Australia anticipates that once operational, this state-of-the-art plant will boast an impressive annual production capacity of 180 million bars. This expansion represents a major step for Ferndale Foods in scaling up its operations to meet market needs.
FoodLine Australia will serve a dual purpose. Firstly, it will offer co-manufacturing services to Ferndale Foods Australia’s existing clientele. Secondly, it will enable the company to develop and produce its own expanded lines of better-for-you products. This initiative is projected to create up to 30 employment opportunities in the region over the next 18 months. Production at the new facility is scheduled to commence as early as next month, signaling a rapid turnaround from investment to operational capability for Ferndale Foods.
Ferndale Foods Australia is a key supplier to major retailers in the country, including Woolworths, Coles, and Aldi. Currently, branded products constitute 40% of their business, with private label accounting for a further 25%. This new investment underscores Ferndale Foods’ commitment to capitalizing on the burgeoning market for healthier snacks and bars within Australia. The company highlights retailers like Coles, with their “health in every aisle” strategy, as evidence of this significant and ongoing growth trend in the health-conscious food sector.
Leigh Edward, CEO of Ferndale Foods, explained the rationale behind this investment: “Through extensive research and consultation with our major customers and leading brand owners, we have identified a significant gap in the industry – a comprehensive, state-of-the-art manufacturing hub capable of producing a diverse range of bars, including protein, muesli, low-sugar, sugar-free, gluten-free, and high-fibre options.” This statement emphasizes Ferndale Foods’ proactive approach to meeting specific market demands with a versatile production capability.
Edward further elaborated, “Similar to our success in the marshmallow market, we recognised the existing and increasing demand for better-for-you products. This new facility allows Ferndale Foods to optimise production, storage, and shipping processes for larger customers, providing them with unparalleled convenience and cost savings.” This highlights the efficiency and customer-centric benefits that FoodLine Australia will bring to Ferndale Foods’ operations and partnerships.
Established in 1995, Ferndale Foods Australia has built a strong reputation for its focus on low-sugar products. The company’s Ferndale Confectionery arm manufactures well-known confectionery brands such as Jila Mints and Jols Pastilles. Additionally, their So Soft Marshmallow Co. further diversifies their product portfolio. Beyond the domestic market, Ferndale Foods also exports its products to key international markets, including Japan, South Korea, New Zealand, and the United States, demonstrating a global reach for the Australian company.
Currently, Ferndale Foods Australia achieves annual sales of approximately A$25 million. However, the company is optimistic about the impact of the new FoodLine Australia facility. They project that this expansion will significantly boost sales, anticipating an increase to A$40 million within the first 12 months of operation, and further growth to A$50 million within 18 months. This substantial projected growth underscores the strategic importance of this investment for Ferndale Foods and its future market position.
Looking ahead, Ferndale Foods Australia anticipates a significant increase in staff numbers, growing from 65 to over 100 employees by mid-2024. This expansion is directly linked to the launch of their new better-for-you product lines, which will be manufactured at the FoodLine Australia facility. This investment by Ferndale Foods not only strengthens their manufacturing capabilities but also reinforces their commitment to innovation and growth within the dynamic better-for-you snack market.
